An analyst has determined that the appropriate EV/EBITDA for Rainbow Company is 9.6. The analyst has also collected the following forecasted information for Rainbow Company: EBITDA 21,520,490 = Market value of debt = 55,130,410 Cash 1,665,658 = Compute the value of equity for Rainbow Company. (Enter your answer as a number, rounded to the nearest whole number, like this: 1234) Type your answer...

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter12: The Cost Of Capital
Section: Chapter Questions
Problem 25P
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An analyst has determined that the appropriate EV/EBITDA for Rainbow Company is 9.6.
The analyst has also collected the following forecasted information for Rainbow Company:
EBITDA 21,520,490
=
Market value of debt = 55,130,410
Cash 1,665,658
=
Compute the value of equity for Rainbow Company.
(Enter your answer as a number, rounded to the nearest whole number, like this: 1234)
Type your answer...
Transcribed Image Text:An analyst has determined that the appropriate EV/EBITDA for Rainbow Company is 9.6. The analyst has also collected the following forecasted information for Rainbow Company: EBITDA 21,520,490 = Market value of debt = 55,130,410 Cash 1,665,658 = Compute the value of equity for Rainbow Company. (Enter your answer as a number, rounded to the nearest whole number, like this: 1234) Type your answer...
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